Battle of the Giants: Amazon vs. Perplexity – Who will win?

Battle of the Giants: Amazon vs. Perplexity – Who will win?

Amazon and Perplexity AI are in a heated dispute that has major implications for the tech industry. On November 5, 2025, Amazon sent a cease and desist letter to Perplexity. This document calls on the company to exclude its Comet browser from shopping on the Amazon Marketplace. Amazon accuses the Comet agent of violating the terms of use and diminishing the users' shopping experience.

In detail, Amazon accuses Perplexity that the Comet browser violates the terms of use, which prohibit the downloading, copying or use of account information for the benefit of third parties. In addition, possible security gaps in data protection are pointed out. Amazon's argument is based on the fact that the features of the Comet browser, which stores login data locally and enables purchases on behalf of customers, are potentially problematic.

The accusation of computer fraud

As Forbes reports, Amazon is also accusing Perplexity of computer fraud because the Comet AI browser agent is said to have made purchases without authorization. There had already been an agreement in November 2024 that paused automatic shopping on Amazon, but this was again called into question by Perplexity with the publication of Comet.

Perplexity itself defends itself against these accusations and describes Amazon’s measures as “bullying”. In a blog post, the company argues that AI agents are user-controlled assistants and not data collectors, which casts Amazon's allegations in a different light. This view is reinforced by criticism of Amazon's advertising business, which reached a record $56.2 billion in 2024. Perplexity sees this as an attempt by Amazon to maintain control over consumers' purchasing decisions and protect its own revenues.

A controversial business

The dispute could have not only legal but also financial consequences for both companies. Jeff Bezos, the founder of Amazon, had already invested in Perplexity's Series B round in January 2024 through his venture fund Bezos Expeditions, adding additional complexity to the relationship between these two tech giants. Given the competition in the online shopping space, the outcome of this dispute could have far-reaching implications for the entire market.

Perplexity, which recently came under fire following allegations of industrial scraping, has said it will continue to seek solutions to engage with Amazon and reach an agreement. Srinivas, a senior member of Perplexity, has reiterated his willingness to cooperate and stressed that the company does not want to be intimidated.

We will be curious to see how this conflict develops and what further steps both sides will take. One thing is certain: in the world of technology and online shopping, there are always new challenges to overcome.